More outsourcing of jobs. Now India is in the debt-collection industry.
In a glass tower on the outskirts of New Delhi, dozens of young Indians are on the telephone, calling America’s out of work, forgetful and debt-stricken and asking for cash.
“Are you sure that’s all you can afford?” one operator in a row of cubicles asks politely. “Well, how do you take care of your everyday expenses?” presses another.
Americans are used to receiving calls from India for insurance claims and credit card sales. But debt collection represents a growing business for outsourcing companies, especially as the American economy slows and its consumers struggle to pay for their purchases.
Armed with a sophisticated automated system that dials tens of thousands of Americans every hour, and puts confidential information like Social Security numbers, addresses and credit history at operators’ fingertips, this new breed of collectors is chasing down late car payments, overdue credit card debt and lapsed installment loans. Debt collectors in India often cost about one-quarter the price of their American counterparts, and are often better at the job, debt collection company executives say.
Interestingly, these companies, even in India may not follow follow the law, just to collect a few more dollars.
Encore — which also operates as Midland Capital Management — also files sheaves of lawsuits against customers who do not respond. Sometimes the debt is so old that the statute of limitations for filing a suit has passed, and it may already have vanished from a person’s credit report. If the debtor makes a new payment, though, the statute of limitations starts all over again.
It’s all about getting as many pennies as they can, even if the initial debt has been paid, the remaining interest can ruin many lives.
“One hundred thirty million U.S. families will get a tax rebate this season” as part of the new economic stimulus package, Manu Sharma, the team leader, explained to a roomful of top-earning collection agents, most in their 20s. Those who qualify for the rebates will get as much $600 a person or $1,200 a household, he said, and “the I.R.S. is going to start paying this money in May.”
Start bringing up the rebate during calls, he told them. “This gives you an advantage so you can increase your wallet share,” he went on. “Get them set up on minimum balance arrangements” based around their tax rebates.
Savvy business or greed?
